AMERIGO RESOURCES LTD (ARG.CA) Stock Fundamental Analysis
TSX:ARG - Toronto Stock Exchange - CA03074G1090 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to ARG. ARG was compared to 797 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making ARG a very profitable company, without any liquidiy or solvency issues. ARG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally ARG also has an excellent dividend rating. This makes ARG very considerable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
ARG had positive earnings in the past year.
In the past year ARG had a positive cash flow from operations.
ARG had positive earnings in each of the past 5 years.
ARG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.31%, ARG belongs to the top of the industry, outperforming 93.60% of the companies in the same industry.
ARG has a Return On Equity of 17.61%. This is amongst the best in the industry. ARG outperforms 94.23% of its industry peers.
With an excellent Return On Invested Capital value of 15.53%, ARG belongs to the best of the industry, outperforming 97.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARG is below the industry average of 12.25%.
The last Return On Invested Capital (15.53%) for ARG is above the 3 year average (8.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 17.61% | ||
| ROIC | 15.53% |
ROA(3y)4.32%
ROA(5y)6.06%
ROE(3y)8.42%
ROE(5y)11.89%
ROIC(3y)8.34%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 9.51%, ARG belongs to the best of the industry, outperforming 92.60% of the companies in the same industry.
In the last couple of years the Profit Margin of ARG has declined.
ARG has a Operating Margin of 20.77%. This is amongst the best in the industry. ARG outperforms 92.72% of its industry peers.
In the last couple of years the Operating Margin of ARG has declined.
The Gross Margin of ARG (24.63%) is better than 89.71% of its industry peers.
In the last couple of years the Gross Margin of ARG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.77% | ||
| PM (TTM) | 9.51% | ||
| GM | 24.63% |
OM growth 3Y-16.35%
OM growth 5YN/A
PM growth 3Y-20.62%
PM growth 5YN/A
GM growth 3Y-13.28%
GM growth 5Y134.26%
2. Health
2.1 Basic Checks
ARG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ARG has about the same amount of shares outstanding.
Compared to 5 years ago, ARG has less shares outstanding
The debt/assets ratio for ARG has been reduced compared to a year ago.
2.2 Solvency
ARG has an Altman-Z score of 3.55. This indicates that ARG is financially healthy and has little risk of bankruptcy at the moment.
ARG has a Altman-Z score of 3.55. This is in the better half of the industry: ARG outperforms 61.10% of its industry peers.
ARG has a debt to FCF ratio of 0.26. This is a very positive value and a sign of high solvency as it would only need 0.26 years to pay back of all of its debts.
The Debt to FCF ratio of ARG (0.26) is better than 96.36% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that ARG is not too dependend on debt financing.
ARG has a Debt to Equity ratio of 0.03. This is comparable to the rest of the industry: ARG outperforms 43.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.79
WACC8.66%
2.3 Liquidity
ARG has a Current Ratio of 0.91. This is a bad value and indicates that ARG is not financially healthy enough and could expect problems in meeting its short term obligations.
ARG has a Current ratio (0.91) which is comparable to the rest of the industry.
ARG has a Quick Ratio of 0.91. This is a bad value and indicates that ARG is not financially healthy enough and could expect problems in meeting its short term obligations.
ARG's Quick ratio of 0.77 is on the low side compared to the rest of the industry. ARG is outperformed by 61.10% of its industry peers.
The current and quick ratio evaluation for ARG is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
ARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 550.00%, which is quite impressive.
Measured over the past years, ARG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.96% on average per year.
ARG shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.25%.
ARG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.98% yearly.
EPS 1Y (TTM)550%
EPS 3Y-18.96%
EPS 5YN/A
EPS Q2Q%-22.96%
Revenue 1Y (TTM)28.25%
Revenue growth 3Y-1.15%
Revenue growth 5Y9.98%
Sales Q2Q%-1.65%
3.2 Future
ARG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.37% yearly.
ARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.76% yearly.
EPS Next Y8.77%
EPS Next 2Y39.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.05%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.67, ARG is valued correctly.
Based on the Price/Earnings ratio, ARG is valued cheaply inside the industry as 93.85% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ARG to the average of the S&P500 Index (27.30), we can say ARG is valued rather cheaply.
The Price/Forward Earnings ratio is 6.59, which indicates a rather cheap valuation of ARG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARG indicates a rather cheap valuation: ARG is cheaper than 94.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, ARG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 6.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARG is valued cheaply inside the industry as 96.74% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ARG is valued cheaply inside the industry as 97.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.3 | ||
| EV/EBITDA | 4.01 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ARG has an outstanding profitability rating, which may justify a higher PE ratio.
ARG's earnings are expected to grow with 39.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2Y39.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ARG has a Yearly Dividend Yield of 5.29%, which is a nice return.
ARG's Dividend Yield is rather good when compared to the industry average which is at 14.97. ARG pays more dividend than 99.12% of the companies in the same industry.
ARG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
5.2 History
The dividend of ARG is nicely growing with an annual growth rate of 24.22%!
ARG has been paying a dividend for at least 10 years, so it has a reliable track record.
ARG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)24.22%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
ARG pays out 104.92% of its income as dividend. This is not a sustainable payout ratio.
ARG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP104.92%
EPS Next 2Y39.37%
EPS Next 3YN/A
TSX:ARG (7/11/2025, 7:00:00 PM)
2.28
+0.01 (+0.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners24.9%
Inst Owner ChangeN/A
Ins Owners14.03%
Ins Owner ChangeN/A
Market Cap368.15M
Analysts84
Price Target2.55 (11.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
Yearly Dividend0.16
Dividend Growth(5Y)24.22%
DP104.92%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-5%
Min Revenue beat(2)-11.53%
Max Revenue beat(2)1.52%
Revenue beat(4)2
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-11.53%
Max Revenue beat(4)4.76%
Revenue beat(8)3
Avg Revenue beat(8)-2.41%
Revenue beat(12)5
Avg Revenue beat(12)-1.33%
Revenue beat(16)5
Avg Revenue beat(16)-1.42%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 6.59 | ||
| P/S | 1.4 | ||
| P/FCF | 6.3 | ||
| P/OCF | 4.71 | ||
| P/B | 2.59 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 4.01 |
EPS(TTM)0.18
EY7.89%
EPS(NY)0.35
Fwd EY15.17%
FCF(TTM)0.36
FCFY15.88%
OCF(TTM)0.48
OCFY21.25%
SpS1.63
BVpS0.88
TBVpS0.86
PEG (NY)1.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 17.61% | ||
| ROCE | 28.1% | ||
| ROIC | 15.53% | ||
| ROICexc | 19.28% | ||
| ROICexgc | 19.78% | ||
| OM | 20.77% | ||
| PM (TTM) | 9.51% | ||
| GM | 24.63% | ||
| FCFM | 22.22% |
ROA(3y)4.32%
ROA(5y)6.06%
ROE(3y)8.42%
ROE(5y)11.89%
ROIC(3y)8.34%
ROIC(5y)N/A
ROICexc(3y)10.81%
ROICexc(5y)N/A
ROICexgc(3y)11.1%
ROICexgc(5y)N/A
ROCE(3y)15.09%
ROCE(5y)N/A
ROICexcg growth 3Y-6.54%
ROICexcg growth 5YN/A
ROICexc growth 3Y-6.66%
ROICexc growth 5YN/A
OM growth 3Y-16.35%
OM growth 5YN/A
PM growth 3Y-20.62%
PM growth 5YN/A
GM growth 3Y-13.28%
GM growth 5Y134.26%
F-Score9
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 62.58% | ||
| Cap/Sales | 7.51% | ||
| Interest Coverage | 31.48 | ||
| Cash Conversion | 90.71% | ||
| Profit Quality | 233.62% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 3.55 |
F-Score9
WACC8.66%
ROIC/WACC1.79
Cap/Depr(3y)56.05%
Cap/Depr(5y)50.06%
Cap/Sales(3y)7.03%
Cap/Sales(5y)5.9%
Profit Quality(3y)227.23%
Profit Quality(5y)233.17%
High Growth Momentum
Growth
EPS 1Y (TTM)550%
EPS 3Y-18.96%
EPS 5YN/A
EPS Q2Q%-22.96%
EPS Next Y8.77%
EPS Next 2Y39.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)28.25%
Revenue growth 3Y-1.15%
Revenue growth 5Y9.98%
Sales Q2Q%-1.65%
Revenue Next Year2.05%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1739.14%
EBIT growth 3Y-17.31%
EBIT growth 5YN/A
EBIT Next Year85.18%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y391.24%
FCF growth 3Y-14.58%
FCF growth 5YN/A
OCF growth 1Y179.11%
OCF growth 3Y-13.96%
OCF growth 5Y43.83%